[The Implication of Auditors in Financial Crisis - The Case of Lehman Brothers]

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Acknowledgement

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Factors Affecting Corporate Scandals

(Proposal)

Introduction

Background

The former executives of Lehman Brothers today at Nomura have therefore received in December 2008 larger bonuses than their competitors when their bank failed. Ironically, much of bankers working at Nomura before the crisis, which could be pleased that their bank in good health, bought Lehman were quickly disappointed. The integration of business merger and acquisition of U.S. firm has also meant the importation of its strategy. Nomura treated in Europe much more modest affairs, often in direct relationship with the parent company in Japan. They could accept cases of reasonable sizes, the shareholders of Lehman would not even watch, and for which they invested time and money. These employees with different working methods were less profitable. Much has been made redundant, while the survivors of the failed bank would receive guaranteed bonuses. What has changed for former employees of Lehman Brothers at Nomura? Not much. They do the same job, with virtually the same team. They kept their wages. Advisors M & A are more likely to marry Franco-Asian business as companies Franco-American, since they benefit from the expertise of the Japanese bank branches abroad.

But Lehman Brothers was bought eventually, in several pieces. Barclays the U.S. operations of the bank were taken over by Barclays. The British bank has seized the opportunity to assert its influence on the American continent. Its acquisition would have also yielded billions in 2008, a sign that Lehman has almost been sold off in the urgency of the crisis. In Europe, however, all the trading and merger and acquisition, and part of the "fixed income", "the flagship of Lehman," were bought by a Japanese bank, Nomura. Little known in France, the latter already had a modest activity on the old continent. It bought the U.S. giant for a pittance, but had to commit to the salaries of company executives, whose brains and address book are the main added value. There has been no dismantling of the company. Quite the contrary, about 70% of the "boss" are committed to the buyer in exchange for serious consideration: the guarantee that the bonus would be paid in December 2008 in March 2009 the same amount as those collected in 2007, before losses colossal bank. And Nomura bought Lehman's expertise and its European network. For senior Lehman included in the contract, it was a godsend, because their bonuses were guaranteed for 2008 and 2009.

Problem Statement

Behind the financial problem at Lehman Brothers is a moral problem that has ...